January 11, 2018 7:54am
Dear CEO, 2017 is over, what is your company going to do for investors in 2018 or did you forget it is their company as well?
Companies if they’re going to keep investors in the fold, better be prepared to guide, beat expectation and be more transparent.
Investors were sacrificed for the needs of the business continuance (financing, dilution and depreciation); CEOs better be ready to make it right!
You want a multiple, enlighten the polarized …
Pre-open indications: 5 SELLs and 1 BUY
Higher open expected
Dow futures are UP +0.14% (+36 points) and NASDAQ futures are UP +0.21% (+14.25 points)
U.S. stock index futures edged slightly higher ahead of the open on Thursday, as investors took note of the mixed sentiment in markets overseas.
European markets were slightly lower, as investors reacted to the release of corporate earnings and economic data.
Asian indexes closed lower following the softer lead from Wall Street. Investors in the region also focused on quarterly releases as Japanese corporates kicked off earnings season.
Issues that will affect the trading day: Day 4 at the JP Morgan and the ancillary, surrounding conferences and mini meetings in SF
Data docket: jobless claims are due out at 8:30 a.m. ET, along with producer price index (PPI) data. The Monthly Treasury Statement is then expected to come out at 2 p.m. ET.
Issues on the political front: In the previous trading day, the S&P 500 and Nasdaq snapped a six-day winning streak, both closing lower as investors fretted over the possibility of China halting its Treasury bond purchases, and the U.S.' future involvement in NAFTA.
Henry’omics:
From Wednesday night’s closing bell post, “… more of same, an effervesce without any fizz. The sector opened down, stayed down and closed barely positive. When you start off the week and year the way we did, it's because of waning sentiment and its 2017 share pricing roots. While the NASDAQ (-0.2%) and XLV (-0.17%) were down although the IBB (+0.45%), XBI (+1.26%) and IWM (+0.01%) were up. After all the hype – “puff the magic dragon”, the hardships of the sector growing older with nominal share pricing results for most and then there are the issues of platforms.”
As I stated, “A slow and bare upside (as the session ended) can be a double-edged sword for RegMed and cell therapy stocks. When the gain comes from a low volume; it signals that traders are becoming more confident about those considered oversold.”
But, for how long …which fans a risk-on mood — an appetite for riskier investments?
- You don’t always get what you pay for POST many stock purchases.
What investors thought they were getting ended-up being a dog, that doesn’t bark!
- Sell-side analysts from I-Banks still write significant research, which barely make it online. Under the same roof there’s typically a division looking to do investment banking for the same companies that the analysts cover. Are the analysts really impartial?
This fact highlights the value of the humble stock newsletter writer — those pundits who charge a fee for what is (in my “ego” case) short and sweet, to the point, an independent insight into stock pricing, the biggest component of research.
I have a bias, because I write in RegMed Investors!
BUT, what I DON’T do are Twitter rants, blog offering puff and hyped posts and regurgitating review of PR “junkies”.
The cell therapy sector’s record over 5 sessions (of 40 covered companies): The RegMed and cell therapy sector closed POSITIVE on Wednesday, NEGATIVE on Tuesday, Monday and last Friday, POSITIVE on last Thursday:
· Wednesday closed POSITIVE with 18 decliners, 20 advancers and 2 flats;
· Tuesday closed NEGATIVE with 21 decliners, 18 advancers and 2 flats;
· Monday closed NEGATIVE with 26 decliners, 13 advancers and 1 flat;
· Friday closed barely NEGATIVE with 20 decliners, 18 advancers and 2 flats;
· Last Thursday closed barely POSITIVE with 19 decliners, 21 advancers and 0 flats;
Today’s indications:
- The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Thursday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) is indicating a POSITIVE +0.02% in Thursday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Thursday’s pre-open;
- The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.1% in Thursday’s pre-open
Companies in my headlights:
Applied Genetic Technologies (AGTC) closed up +$0.10 to $4.30 after Tuesday’s down -$0.15 to $4.20 after Monday’s $0.05 to $4.35 after Friday’s +$0.20 to $4.30 with 112.1 K shares traded <3 month average = 110.5 K shares>after Thursday’s +$0.20 to $4.10 with 191.9 K shares traded. The three (3) sessions of the 2018 have been good as the previous Friday (12/29) closed at $3.67 having been down from Thursday’s $3.67. AGTC has clinical trial timing issues and spending woes – Maintaining SELL;
Capricor (CAPR) closed up +$0.01 to $1.66 after Tuesday’s -$0.02 to $1.65 after Monday’s +$0.06 to $1.67 with 347.3 K shares traded <3 month average = 800.8 K shares>. Cash is getting low and CAPR NEEDS to finance. It’s up from $1.57 in five (5) sessions; mark my words, the trigger will be pulled soon – Maintaining SELL;
Cesca Therapeutics (KOOL) closed down -$0.516 to $3.27 after Tuesday’s +$0.43 to $3.78 after Monday’s +$0.14 to $3.35 with 121.1 K shares traded <3 month average = 78.8 K shares. The aftermarket indication is a negative -$0.38 or -10.25%, it never holds for long; 12/27/17 the share price was $2.80. Not a believer – Maintaining SELL;
Intrexon (XON) closed down -$0.28 to $13.40 after Tuesday’s +$0.96 to $13.68 with 2.5 M shares traded. The aftermarket indication is a positive +$0.12 or +0.88% but, what’s it based on - ActoBio Therapeutics, a wholly owned subsidiary of Intrexon Corporation (XON) did present at Biotech Showcase about its P2b and early portfolio of candidates for clinical development across a number of potential indications; 1/4/18’s share pricing was $12.89 having closed at $11.52 on 12/29/17. An Icarus candidate? – Maintaining SELL;
Osiris Therapeutics (OSIR) closed down -$0.34 to $6.88 after Tuesday’s +$0.52 to $7.22 with 74,048after Monday’s +$0.31 to $6.70 with 87.5 K shares traded <3 month average = 21.6 K shares>. On 12/27/17, the price was $5.77, the question I ask is which of their former executives will go to jail and when will their past due filings be applied – other than the, it’s pure speculation – Maintaining SELL;
Verastem (VSTM) closed up again +$0.02 to $2.96 after Tuesday’s $2.94 after Monday’s -$0.05 to $2.92 following Friday’s -$0.08 to $2.97 with 1.62 M shares traded<3 month average = 863 K shares> after Thursday’s -$0.09 to $3.05 with 833.2 K shares traded after Wednesday’s $3.14, Tuesday’s $3.21 and the previous Friday’s (12/29) $3.07 after Thursday’s $3.20. VSTM amended its Loan and Security Agreement with Hercules Capital increasing its existing borrowing limit under the loan facility from $25 million to up to $50 million in financing. VSTM had received the first $15 million of financing under the original Loan and Security Agreement. Additional tranches of up to $35 million in aggregate will be available to VSTM to drawdown subject to certain conditions – it’s better (cheaper) than an offering, although it still costs stock and warrants. The aftermarket indication is a positive +$0.03 or +1.01% – Maintaining BUY;
Opinions expressed are those of the author and are subject to change, and not intended to be a forecast of future events, a guarantee of future results, nor investment advice.
Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors. All investments are subject to risks. Investors should consider investment objectives.
Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.
